The central limit theorem indicates that as the size of a sample increases, the distribution of sample means approaches a normal distribution, irrespective of the population’s original shape. Typically, this is valid when the population size, denoted as n, is 30 or more (which means greater than 29). The population’s skewness or normality is not a factor in this scenario. Therefore, with a sufficiently large group, the mean results from sampling will equal the population mean.
Answer:The additional cost amounts to $0.72
Explanation:
By applying the formula √2DCO/CC
Where CO represents the ordering cost per transaction
D symbolizes the annual demand
CC signifies the annual carrying or holding expense
Annual demand = 1000*52 = 52,000
Ordering cost is $15 per transaction
Holding cost = (15/100) * 52,000 = 7,800 annually
Using √2DCO/CC
√2*15*52,000/7,800
√1,560,000/7,800
√200
= $14.14
The extra cost will amount to
900*52 = 46,800 annually
√2*15*46,800/7,800
√1,404,000/7,800
√180
13.42
Thus, the additional cost is
14.14 - 13.42
= $0.72
Answer:
Freezer 2 is preferable as it shows a greater present worth.
Explanation:
